BP China Takes over Zhongshan LPG Plant

17/02/2005

BP China, the China unit of U.K. energy company BP PLC (BP), said Thursday it had finalized its US$4.6 million takeover of Zhongshan Gas Co.'s liquefied petroleum gas (LPG) bottling facility in Guangdong.

The LPG plant with an annual throughput capacity of 30,000 metric tons and 20 percent market share in Zhongshan and surrounding areas is to be renamed BP (Zhongshan) LPG Co. Ltd.

Completion of the acquisition of the formerly State-run firm, which less than two years ago became a privately held company, adds to BP China's existing LPG presence in Guangdong.

"The deal will enable BP to further develop its LPG business in the Pearl River Delta and follows the establishment of the BP Foshan LPG Co. in early 2004, which markets BP LPG to the entire Foshan area," the company statement said.

The renamed company would operate according to international health, safety and environmental standards, the statement said.

BP China's LPG operation spans seven LPG businesses along the southern and eastern coasts of China, with a total investment of about US$250 million.